Albania’s population is declining, yet luxury spending is on the rise. INSTAT data shows a 32.6% increase in imported luxury watches in 2024, totaling 752 million lekë (€7.5 million). While smartphones have replaced traditional timepieces, high-end watches remain popular as status symbols.
The trend extends beyond watches. Imports of natural pearls, precious stones, and jewelry reached 6.8 billion lekë (€68 million) last year, a 34.4% rise from 2023. Over the past five years, imports of these luxury items have grown 3.4 times, reflecting a shift in consumer preferences.
In total, nearly €75 million was spent on luxury goods like watches and jewelry in 2024, significantly outpacing the 8% average growth of other imports. The luxury real estate sector is also expanding, with penthouses now selling for over €6,000 per square meter, meeting sustained demand.
However, this growth contrasts with broader economic challenges. In 2023, 42% of Albanians were at risk of poverty, the highest rate in Europe. More than 1 million people face financial hardship, highlighting economic disparities.
While luxury markets flourish, structural economic issues persist. Low wages and corruption continue to drive emigration, particularly among young professionals, raising concerns about long-term sustainability.
